Oklahoma Considers Two Sports Betting Bills
Oklahoma lawmakers are once again attempting to legalize sports betting, introducing two competing bills: Senate Bill 125 (SB 125) and Senate Bill 164 (SB 164). While both proposals aim to bring regulated sports betting to the state, they take different approaches, with one focusing on tribal gaming and the other on the state lottery commission.
SB 125: A Tribal Gaming Expansion
Senate Bill 125 seeks to expand the existing tribal gaming compacts by allowing Native American tribes to offer both in-person and mobile sports betting.
The bill amends state gaming laws to define sports pools, authorizing wagers on professional and collegiate sports events, excluding horse racing.
Under this bill, tribes operating under Class III gaming compacts would be able to offer sports betting while paying the state a tiered revenue share:
- 5% on the first $5 million in monthly sports betting revenue
- 6% on the next $5 million
- 7% on all revenue above $10 million
Additionally, the legislation limits the state’s authority over how tribes run sports betting, requiring only federal approval from the Department of the Interior to finalize any agreements. If passed, SB 125 would reinforce tribal sovereignty over gaming while generating new revenue streams for both the tribes and the state.
SB 164: A State-Led Sports Betting Model
In contrast, Senate Bill 164 proposes a state-managed sports betting system under the Oklahoma Lottery Commission. This bill does not rely on tribal gaming compacts, instead allowing retail and mobile sports betting through licensed commercial operators.
The bill establishes “sports pools” and gives the Lottery Commission the power to regulate and license sportsbooks. It sets licensing fees and tax rates as follows:
- 15% tax on retail sports betting revenue
- 20% tax on mobile sports betting revenue
- $500,000 initial licensing fee for mobile operators
- $100,000 annual renewal fee for mobile operators
Revenue from this bill would fund education, gambling addiction programs, and administrative costs, creating a state-controlled betting market that operates independently from tribal gaming interests.
Challenges and Political Roadblocks
Despite the introduction of these bills, the path to legalization remains uncertain. In previous years, negotiations between the state and tribal nations have stalled over control and revenue-sharing agreements. Governor Kevin Stitt has historically opposed any bill that grants exclusive sports betting rights to tribes, instead favoring a more open licensing system.
Economists have also raised concerns about the financial impact of legal sports betting. Neil Metz, an economics professor at the University of Central Oklahoma, argues that sports betting generates less revenue than other gaming forms due to lower tax rates and tight profit margins. While sports betting could boost engagement and tourism, its overall financial benefits may be smaller than expected.
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